Paying VAT??

[Mr Saito]

Hey guys,

I want to start selling in the EU.

I have a HK company.

And I'm dropshipping the product directly from China.

Do I need to pay any VAT? If so can someone explain it to me, please?

Thanks!

 

[Marzio]

Do I need to pay any VAT?

Yes if you sell to final consumer.

You should charge final consumer's country VAT

https://europa.eu/youreurope/business/taxation/vat/cross-border-vat/index_en.htm#withintheeu

 

[Nomado]

I am also in the case where I sell to UE customers and I am then supposed to apply EU VAT on each sales.

I have a UAE freezone and I am using a MoR (merchant of records) to process these payments. I pay them a little fee (7%) and in exchange they handle the EU VAT, collect it on each sales and give it to the EU administration.

I quite liked this situation because of the privacy. The MoR was declaring the VAT in its own name and my freezone was not mentionned anywhere.

Few weeks ago, that MoR told me that they want to terminate my account because of the nature of the sales (totally legit advertizing services, but they don't like that kind for some reasons...) and it seems that it is the same for all the other MoRs I have contacted then...

I am then left with not many options, and one of them is to use Stripe as a payment processor connected to my freezone and declare the VAT myself to one of the EU administration... idea that I really don't like because I'm pretty sure they'll come ask me questions as a EU citizen (I am a perpetual traveler).

I thought about creating a light company somewhere in Europe to cash the sales and do buffer between the VAT declaration and the freezone, but I'm not sure.

What do you guys think is the best way to handle that damn VAT?